The only thing I noticed about the new firmware update was that when you are in the font menu changing line spacing and allignment you get some ghosting effects with the e-ink, when you play with some options for about 40 seconds, the screen gets a ghosted e-ink splash all over it until you exit the settings/font menu.

Hmm, I have never experianced that. Mind you the first thing I did do was change my refresh to 2 pages. At least for me. And I have played wtih the spacing and fonts to ensure that I get the darkest and best font for reading with.